IBM has revealed that its revenue rose 2 percent to $15.8 billion with gross profit margin of 56.8 percent during the second quarter of 2024.
IBM’s marginal growth in sales revenue indicates that enterprises are spending on technology for their business growth.
“We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago,” said Arvind Krishna, IBM chairman and chief executive officer.
“We accelerated our revenue growth as we continue to execute well on our strategy. Our business fundamentals, operating leverage, product mix and productivity initiatives all contributed to significant margin expansion and increased profit and free cash flow,” said James Kavanaugh, IBM senior vice president and chief financial officer.
REVENUE DETAILS
IBM Software revenues of $6.7 billion (up 7.1 percent):
– Hybrid Platform & Solutions up 5 percent
— Red Hat up 7 percent
— Automation up 15 percent
— Data & AI down 3 percent
— Security up 2 percent
– Transaction Processing up 11 percent
IBM Consulting — revenues of $5.2 billion, down 0.9 percent:
– Business Transformation, up 3 percent
– Technology Consulting, down 3 percent
– Application Operations, down 4 percent
IBM Infrastructure — revenues of $3.6 billion, up 0.7 percent
– Hybrid Infrastructure, up 4 percent
— IBM Z up 6 percent, up 8 percent
— Distributed Infrastructure, up 3 percent
– Infrastructure Support down 5 percent, down 3 percent
IBM Financing — revenues of $0.2 billion, down 8.3 percent
Forecast
IBM continues to expect constant currency revenue growth consistent with its mid-single digit model.
